The Scottish Government has withdrawn solar and battery funding from the Home Energy Scotland (HES) Grants and Loan Scheme.
From 6th June, the scheme will not offer funding for PV panels and energy storage systems, even when installed with a heat pump.
HES previously provided up to £11,500 in grants and interest-free loans for air source heat pumps, solar installations, and batteries.
Jamie Di Sotto, commercial director at AES Solar, warned that this move will deter homeowners from adopting greener energy sources, jeopardising the government’s net zero target for 2045.
“We were once so proud that Scotland was leading the way in both residential and business funding for renewable technologies, which not only decarbonises our energy network, but takes the stress off domestic energy bills and makes businesses more competitive.
“If the Scottish Government is serious about net zero they will have to come up with an alternative plan which makes renewable energy systems affordable for all.”
Di Sotto highlighted the high demand for solar PV in Scotland, with 25,875 systems installed in homes and businesses last year, a 56% increase from 2021.
Rising energy bills make solar panels economically sensible, but the funding removal is a setback likely to discourage investment.
The Scottish Government aims to increase solar capacity from 0.5GW to between 4GW and 6GW by 2030. However, Di Sotto noted that withdrawing financial support will likely deter many from investing in clean energy, widening the socioeconomic gap in access to sustainable energy.
Furthermore, Di Sotto called for a cross-party agreement to ensure consistent funding for home energy, regardless of the ruling party.
Josh King, chair of Solar Energy Scotland, also criticised the decision, saying:
“This decision significantly undervalues the role of solar and storage in decarbonising our energy system – and that all of our electric vehicles and heat pumps are only low carbon if they are powered by an increasing amount of clean energy.
“It overlooks the fact that loan budgets are eventually recouped and are distinguishable from the grants available for other technologies.”
